🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Japan's Finance Minister says govt will take necessary forex steps as yen tumbles

Published 11/13/2023, 08:49 PM
Updated 11/13/2023, 11:15 PM
© Reuters. Japanese Finance Minister Shunichi Suzuki arrives for a news conference during the annual meeting of the International Monetary Fund and the World Bank in Marrakech, Morocco, October 13, 2023. REUTERS/Susana Vera/File Photo
USD/JPY
-

By Tetsushi Kajimoto and Kaori Kaneko

TOKYO (Reuters) -Japanese Finance Minister Shunichi Suzuki said on Tuesday that the government would take all possible steps necessary to respond to currency moves, repeating his usual mantra that excessive swings were undesirable.

Suzuki made the remarks when asked about impacts from the weak yen on households which have been pressured by rising living costs due to higher import prices for fuel and food.

The Japanese currency has fallen to near 152 yen versus the dollar, its lowest in more than a year, which helps boost profits at exporters and firms doing business abroad while burdening other companies and consumers with rising import bills.

"What's important is to maximise positive effects from the weak yen while mitigating negatives," Suzuki told reporters.

The government is already taking steps to ease the burden on households through a proposed economic package for this fiscal year ending in March 2024, Suzuki said, but made no mention of further measures including whether Japan would intervene in the currency market.

The yen has been under relentless selling pressure this year, weighed down by the Bank of Japan's pledge to maintain its ultra-easy monetary settings even as other developed economies have sought to keep rates higher for longer.

© Reuters. Japanese Finance Minister Shunichi Suzuki arrives for a news conference during the annual meeting of the International Monetary Fund and the World Bank in Marrakech, Morocco, October 13, 2023. REUTERS/Susana Vera/File Photo

Many in the market are focusing on interest rate differentials, with the prolonged monetary tightening in the U.S. a factor in the recent forex moves, Bank of Japan's deputy governor Shinichi Uchida told lawmakers at the parliament.

Japan last intervened in the currency market - selling dollars and buying yen - in October last year. Intervention data released last month showed the authorities have steered clear of further such action since then.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.